7. Distribution Strategies

Advantage:1.Lead times are reduced.2.Retailers avoid expenses of operating a DC.

Wal-Mart

Warehouses and DC serve as transfer points for inventory

Take advantage fm Risk Pooling

7.Distributin Stategies

AdvantagesDisadvages

VMI

Cross-Docking(6点必背）

Centralized Pooling & Transhipment

Perishable Products

Requirements:1.Require advanced information technology.(VMI&EDI Bullwhip)2.Needs a fat and responsice transportation system.

Disadvantage:未写，和direct shipment 对应说

Advantages:1.Transportation cost lower than direct shipment.2.Inventory management and risk pooling are considered.Others issues like centralized or decentralized is considered.

Shipment between different facilities at the same level in the supply chain to meet some immediate need.(usually in retail level)

Shipping Cost are reasonable

Characteristics:1.Goods spend at most 48 hours in DC centers.2.Avoids inventory and handling cost (和2比）。3.Stores triggers orders of products.Wal-Mart delivers about 85% of its products.

Describe Wal-Mart’s cross docking operation/How it help (Case)

Direct Shipment

Retailers have same owner

Furniture

Def.

Warehousing

条件：1.Retail store requires fully loaded trunks2.Leadtime is critiacal.3.Often mandated by powerful retailers4.Manufacturer may be reluctant but have no choice.5.Prevalant in grocery industry.

With advanced information system